Saturday, March 24, 2012
Hewlett Packard Co, the largest US technology company by revenue
American Based Multinational Company Hewlett Packard Co said it was merging its printer and personal computer business in a major reorganization to save costs (price) and boost growth. The unit will be headed by Hewlett Packard Co personal computer chief Todd Bradley, the company said in a statement on March. Reuters had reported on the plans on Tuesday. “Ensuring we have the good organizational structure in place is a critical first step in driving improved execution, and increasing effectiveness and efficiency Hewlett Packard Company chief executive MR.Meg Whitman said. “The result will be a faster, more streamlined, performance-driven Hewlett Packard Co that is customer focused and poised to capitalize on rapidly shifting industry trends Silicon Valley- San Francisco- USA,” she added. The Hewlett Packard company is also planning to unify other functions such as marketing across the business to promote a stronger brand and improve efficiency in India. Hewlett Packard Co, the largest US technology company by revenue, is struggling to keep its core personal computing business in the black as smart mobile phone devices from tablets to smart mobile phones eat into sales. The Hewlett Packard company is trying to reinvent itself as a major enterprise computing provider.
The decades old corporation, often mentioned in accounts of the founding of Silicon Valley- San Francisco- USA, has been through its share of turmoil in past years. Hewlett Packard Co considered for months last year 2011 a proposal to sell or spin off its personal compoter arm, known as the personal systems group. That emerged as the Hewlett Packard company announced it would get out of the business of making tablets with the failure of its TouchPad product. But after Whitman’s predecessor and former Hewlett Packard CEO MR.Leo Apotheker was ousted in September 2011 for failing to revive a moribund stock, the company abandoned the idea and deemed personal computers core to its overall strategy. Hewlett Packard Co moves evoked a mixed response from analysts group. While they felt Whitman was moving at an impressive speed to 6issues at the company and jump start growth in market, the advantages of the integration were unclear. “It’s too early to tell what this is going to do,” Sterne Agee analyst Mr.ShawWu said. “The risk I think is that both divisions have very different business models in the market.”
Source: DNA Money